Pending Home Sales Index Down 4.3%

Pending Home Sales Index Down 4.3%

Daily Real Estate News |
Monday, January 28, 2013

The Pending Home Sales Index, an indicator that reflect contracts but not closings, fell 4.3 percent in December. While pending home sales declined last month, they have stayed above year-ago levels for 20 consecutive months, according to the National Association of REALTORS®.

NAR breaks the index down by region, and noted that the current local variation depends a great deal on available inventory levels.

“Supplies of homes costing less than $100,000 are tight in much of the country, especially in the West, so first-time buyers have fewer options,” said Lawrence Yun, NAR chief economist. “We expect a seasonal rise of inventory in the spring to help, but a seller’s market may be developing. Much of the West is already a seller’s market for homes priced under a million dollars, but conditions are much more balanced in the Northeast.”

Regionally, the pending home sales index

fell 5.4 percent in the Northeast, but is 8.4 percent higher than it was in December 2011

rose 0.9 percent in the Midwest, and is 14.4 percent above a year ago

declined 4.5 percent in the South, but is 10.1 percent higher than in December 2011